Wholesale vs Retail – Can I Manage Both With One System?

Wholesale vs Retail.

Retail and wholesale. At their core, the two concepts are both about selling goods on to make a profit. However, realistically, managing them individually often highlights big differences throughout the process.

Retailers are all encompassing and need to be a master of all trades. Retailers offer B2C services often with many customers but with lower order value.

Wholesalers are generally dealing with B2B customers with Wholesale and Retail Woman volume orders. They don’t face the customers and to some extent there is less pressure, as ultimately the onus is on the wholesaler buyer to sell the goods. However, Wholesalers must deal with large quantities of items and be adept at striking deals and ensuring a pipeline of goods moves as it should throughout a variety of different channels.

Regardless of which avenue you choose to sell by, both avenues benefit greatly from having a complete stock management software to maintain order. Without a system to manage stock levels, returns, accounts, all aspects of business, how can you hope to keep track of what is going on?

How do you even know if you are generating a profit?

In this blog I’m going to identify some of the challenges each type of selling faces, and what both can do to overcome these.

Whether you are a Retailer or a Wholesaler, Khaos Control Cloud has the functionality you need to help your business thrive. Book a demo today.

Retailer needs.

Working in retail means that you are at the heart of the action. Selling directly to the customer and being customer facing, retailers have a real opportunity to gain valuable insights into what their customers want as they can receive the feedback immediately, meaning they can affect real change quickly.

Unfortunately for retailers,Chilled goods in a retail store this also means they must deal with returns, complaints and criticism as they occur. Retailers must deal with these effectively so that the customer does not then start damaging your company’s reputation through voicing their discontent online. it is also particularly useful for businesses to keep a log of any complaints.

This allows for quick identification of any emerging patterns.

Working as a retailer also means greater control. Sellers have the final say over how, where, and when their product is sold. While this creative control will allow an individual to truly realise their dream, it also means a lot of additional responsibility and many tasks to juggle. Therefore, for retailers, having some form of software to manage these areas is key to business success. Software that can not only keep track of orders, returns and stock levels, but also handle additional tasks such as marketing, billing and sales.

Wholesaler needs.

Wholesalers occupy a more “middleman” position within the market, between manufacturers and retailers. This means that ultimately, they are not responsible for the sale of the final product along the chain. As a result, wholesaling can be seen as carrying less risk, to a degree. Despite this perceived lack of risk, Wholesaling is not without its own challenges. Image of a Wholsale Warehouse

Due to rapid advancements in technology, Retailers now have direct access to Wholesale marketplaces, meaning effectively that retailers can cut out the wholesale middleman completely.

Inventory issues can also affect both retailers and wholesalers, however this issue is potentially more prevalent with wholesalers. Keeping track of stock in large warehouses can be a daunting task, but also keeping track of returns and damaged items is equally important for a business to remain profitable and to grow.

One of the biggest issues to face wholesalers in the modern market is keeping up with growth. As your business expands it can become harder and harder to stay on top of things and to ensure your business is maximising revenues and profits. Ultimately this issue would also be solved by implementing a stock management system that is sufficient for your business needs and has the capability to cope with growth.

A system for both?

Regardless of whether you choose to sell goods directly to the customer as a retailer, or to a retailer from the manufacturer as a wholesaler, each method shares the notion that robust software can be the solution to their problems. In fact, despite wholesalers and retailers facing different challenges, both avenues require similar functionality from a system to succeed.

Both Retail and Wholesale also need to ensure they have accurate stock levels to fulfil orders. If a customer orders a product online, and it is not in stock, they are likely to be let down by this experience and opt to go for a competitor. For Wholesalers, having inaccurate stock levels could mean losing large accounts if a customer goes to a competitor which could be costly for the business. Both also need a system whereby data can be accurately recorded and readily available so that business owners can analyse this and take necessary action.

For Retailers, creating and maintaining a database of customers is also crucial for success and growth. Being able to send customers offers and content targeted specifically to their needs can be the difference in making extra sales. For Wholesalers, having a customer database makes reordering quick and effective, meaning the customer is less likely to try and source the goods themselves via a wholesale marketplace.

Khaos Control Cloud will also automatically create a customer record and pull through sales information from whichever channel you are selling. If you are a wholesaler, KCC allows you to view a customer’s order history matrix to show you what your customers previously ordered and to make reordering as slick as possible. For Retailers this means you can target marketing campaigns based on what your customers are buying. Khaos Control Cloud allows for accurate maintenance of stock levels and updates in real time, meaning regardless of which channel you sell through, you will never oversell an item.

Khaos Control Cloud is the perfect system for either a wholesaler or a retailer. KCC integrates with multiple platforms such as Amazon, Ebay and, Magento; however you want to sell your product KCC has you covered. Click the link to find out more about Khaos Control Cloud


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